Economic Recovery Plan 2020-2021 - TOWN OF WHITBY October 2020
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TOWN OF WHITBY Economic Recovery Plan 2020-2021 October 2020 For more information, contact Strategic Initiatives
Table of Contents Executive Summary ........................................................................................................................................ 1 We All Pulled Together ............................................................................................................................... 1 Whitby Has a Plan....................................................................................................................................... 1 Conclusion ................................................................................................................................................... 2 Introduction ...................................................................................................................................................... 3 Before COVID-19 Outbreak: Background Assessment .............................................................................. 4 Provincial Economic Recovery Framework .................................................................................................. 5 The Durham Business Support Ecosystem.................................................................................................. 6 Mobilization: COVID-19 Response ............................................................................................................... 8 Durham Economic Task Force – COVID-19 Response Team ............................................................... 8 Whitby’s Business Recovery Survey......................................................................................................... 9 Labour Force Impact ................................................................................................................................ 10 Real Estate Market Impact ...................................................................................................................... 11 Economic Recovery Plan ............................................................................................................................ 14 Priority 1: Retain existing businesses by providing resources and support programs ...................... 16 Priority 2: Revitalize Whitby’s downtowns by managing main street impact ...................................... 20 Priority 3: Foster and sustain growth in the innovation economy ........................................................ 24 Priority 4: Engage with the post-secondary institutions and other service providers to improve workforce employability ........................................................................................................................... 27 Priority 5: Improve Whitby’s customer service processes and business experiences ...................... 29 Conclusion .................................................................................................................................................... 31 Appendix 1: Background Analysis .............................................................................................................. 32 Appendix 2: Business and Entrepreneurship Support Ecosystem.......................................................... 45 Appendix 3: Business Recovery Survey Results ...................................................................................... 50 TOWN OF WHITBY Economic Recovery Plan 2020-2021
Executive Summary Whitby’s economic development efforts have been focused on increasing local jobs, revitalizing downtowns and continuing to be the “Community of Choice” by enabling a diverse, sustainable economy that enhances the quality of life for residents and the business community. When the World Health Organization declared the COVID-19 outbreak a global pandemic on March 11, 2020, Canadian health care policies were implemented immediately to try and prevent further spread of the virus. These health care measures were unprecedented and resulted in severe economic consequences as businesses were locked down, and citizens were asked to self-isolate. Some industries were less impacted by the lockdowns and Whitby’s diverse industry base meant that Whitby fared better than some other municipalities which are dependent on a single industry base. Many of Whitby’s information technology and professional services companies continued to operate by working from home. Many organizations, including the Town of Whitby, adopted the new “work-from-home” model to ensure the continuation of essential services. Before the COVID-19 outbreak, the Town of Whitby was in a relatively strong economic position with a low industrial vacancy rate and a renewed vibrancy in our two historic downtowns. Significant growth was happening in the West Whitby development and applications were moving forward for Brooklin and Port Whitby. Whitby’s location in the Greater Toronto Area places it as a prime tourist destination. Responding to the advantage of location, Whitby developed many tourist friendly offerings and fun things to do. Whitby also boasts several quality hotel locations, fine dining and a one-of-a-kind shopping experience in our two historic downtowns. Business was booming. We All Pulled Together Economic development team members and others in the Durham Business Support Ecosystem mobilized to respond to the economic fallout by creating the Durham Economic Task Force. This group was made up of Durham Region’s Economic Development and Tourism team; all of Durham’s Chambers of Commerce and Boards of Trade; local municipal economic development teams and local Business Improvement Associations (BIAs). The Durham Economic Task Force identified three priorities: Advocate to the Provincial and Federal governments to respond to the urgent needs of our business community Provide our businesses with resources and information from all levels of government Promote Durham small businesses, particularly local stores, food and agri-businesses that are offering safe, no-contact delivery and pick-up options. With a strong focus on public health and safety, the Province of Ontario released a three-stage framework which outlined the method and principles to be used to reopen businesses, services and public spaces. Whitby Has a Plan Focusing on key priorities, the Whitby plan for recovery is to: 1. Retain existing businesses by providing resources and support programs TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 1
2. Revitalize and rediscover Whitby’s downtowns and manage the main street impact – 3. Foster and sustain the innovation economy 4. Engage with post-secondary institutions and other service providers to improve workforce employability – 5. Improve customer service processes and business experiences. The timing for the associated actions that serve to implement the Recovery Plan are categorized as immediate (IT) (immediate to 6 months); short term (ST) (6-12 months); and medium term (MT) (12-18 months). Some of the actions are in-progress and some have already been completed. Conclusion This plan is meant to be fluid, reacting quickly to the evolution of the COVID-19 pandemic. New actions and initiatives may need to be added to account for these evolving conditions in response to the health and safety of residents. This recovery plan can be implemented with existing staff and financial resources for 2020 and 2021. Despite these present and short term health care and economic conditions, there is a need for a longer term Economic Development Strategy to accelerate business growth post-COVID-19 that builds upon these recovery efforts. The formulation of this strategy requires input from business community members and needs to examine a sustainable and prosperous economic future for the subsequent five years. TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 2
Introduction Whitby’s economic development efforts have been focused on increasing local jobs, revitalizing downtowns and continuing to be the “Community of Choice” by enabling a diverse, sustainable economy that enhances the quality of life for its residents and business community. When the World Health Organization declared the COVID-19 outbreak a global pandemic on March 11, 2020, Canadian health care policies were implemented immediately to try and prevent further spread of the virus. These health care measures were unprecedented with economic consequences as a result of lock-downs, self-isolation and other preventative measures. However, Whitby’s diverse economy meant that certain industries would be less impacted in our community compared to other communities more dependent on single industries. For example, communities reliant on tourism based industries such as accommodation, food and beverage services, and entertainment would be impacted by lock-downs and health care measures. Many of Whitby’s information technology and professional services companies could continue to work from home. Manufacturers, logistics and transportation companies (among others) were declared essential services by the Province of Ontario and could carry on operating with health care measures in place. Whitby’s immediate economic development attention is to support reopening and recovery and a sustainable economic future. This Economic Recovery Plan is built on the following framework: Before COVID-19 Outbreak: Background Assessment – This section provides an assessment of the local economic, demographic and municipal characteristics prior to the outbreak. Provincial Economic Recovery Framework – This section describes the Province’s recovery framework and stages for reopening the economy. These stages shape local recovery efforts. Durham Business Support Ecosystem - There are several business support organizations in Durham Region that focus on business retention and expansion. Each of these organizations has a role to play as Durham’s economy reopens and progresses through each of the Provincial stages. Mobilization: COVID-19 Response – This section identifies early measures in response to the economic fallout and quantifies the labour force and real estate impact during the first half of 2020. Economic Recovery Plan Action Items – This section outlines the activities that will be undertaken to help the Whitby business community adapt and recover by working with other business support organizations. This outbreak has evolved considerably over the first half of 2020 and it is important to adapt to circumstances as they change. Conclusion – This section concludes the Economic Recovery Plan and lays the framework and discussion for a longer term Economic Development Strategy. TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 3
Before COVID-19 Outbreak: Background Assessment Before the COVID-19 outbreak, the Town of Whitby was in a relatively strong position. Whitby’s industrial vacancy rate was at a record low of 1 percent, there was renewed vibrancy in our two historical downtowns with recent and planned development projects. Significant growth was being built in west Whitby and development applications were planned for Brooklin and Port Whitby. Planning tools such as land servicing agreements have been established to create serviced land in west Whitby. These tools have proven to be effective and generated business expansion interest in this employment land area. For example, the Oshawa Clinic Group has acquired a serviced land parcel in west Whitby for their expansion plans. If this property was un-serviced, its marketability for business expansion use would have been reduced significantly. Whitby is becoming a strong tourism hub in the Greater Toronto Area with a depth of offerings. These offerings included a walkable waterfront and harbor, two conservation authorities for outdoor recreation, and entertainment business investment (e.g. Playdium, iFly Toronto). Construction is also well underway for Le Nordik Spa, the only urban spa of its kind in the Greater Toronto Area. A demographic, economic and business background assessment was undertaken to better understand the resident and business community prior to the COVID-19 outbreak being declared a pandemic by the World Health Organization in March 2020. Demographic and economic data was collected from Statistics Canada along with a dataset from Manifold Data Mining Inc. to supplement more recent data. Additional materials have been gathered from the World Council on City Data Indicators for Sustainable Development initiative and the Durham Workforce Authority. Indicators from the 2019 Economic Development Annual Report prepared for Town Council were also referenced. These data sources enabled a comprehensive and up-to-date understanding of demographic, industry and employment indicators for the Town of Whitby. Further details about the data results are available in Appendix 1: Background Analysis. The key findings that emerged from the analysis are: Population growth will continue in the future. The households in Whitby’s population base tend to have a higher amount of disposable income than other communities in Ontario. There are large concentrations of the labour force working in the energy and education services sector, which are driven by the proximity to Ontario Power Generation and post-secondary schools (e.g. Ontario Tech University, Durham College, and Trent University-Durham Campus). Whitby has been strong and growing as a result of being a desired place to live in the Greater Toronto Area. TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 4
Provincial Economic Recovery Framework On April 27, 2020 the Province of Ontario released a three-stage framework which outlined the method and principles to be used to reopen businesses, services and public spaces. For each stage, public health and safety is the leading concern. 1 The Province’s guiding principles to reopen the economy are based on the following: Responsible – guided by public health advice to protect the most vulnerable and at risk. Evidence-informed - defined criteria and consistent measures. Resourced – sufficient health system capacity to respond to any new outbreaks. Monitored – a timely and rigorous testing process. Responsive and effective – measures could be introduced quickly. Clear – there are clear plans and responsibilities for individuals, employers and the health care system. Key considerations for each stage are as follows: Stage 1 – opening select workplaces that can meet current public health guidelines; allowing essential gatherings of a limited number of people; opening some outdoor spaces. Hospitals would also begin to offer some non-urgent and scheduled surgeries and other health care services. Stage 2 – opening more workplaces with significant mitigation plans, which may include some service industries and additional office and retail workplaces, opening more public spaces; allowing some larger public gatherings. Stage 3 – opening workplaces responsibly, relaxing restrictions on public gatherings and allowing full services to resume. Throughout each stage, continued protections for vulnerable populations must be in place along with the continued practice of physical distancing, hand washing and respiratory hygiene to limit health risks. The Province announced in May, 2020, Ontario would be in Stage 1 of the reopening of businesses, services and public spaces. Province of Ontario announced the Durham Region would move to Stage 2 on June 19, 2020 and Stage 3 on July 24, 2020. The dates were dependent upon how this health care crisis evolved on a Regional basis. Business support organizations, which includes the Town of Whitby, needed to be cognizant of these guiding principles and stages and adapt programming accordingly. 1Reopening Ontario after COVID-19, Province of Ontario, https://www.ontario.ca/page/reopening-ontario-after-covid-19, published on April 27. 2020. TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 5
The Durham Business Support Ecosystem The Durham Business Support Ecosystem includes a variety of organizations that aim to support business growth locally and across the Region. Of the many organizations. Whitby works very closely with the Whitby Chamber of Commerce, Downtown Whitby BIA and 1855 Whitby Tech Accelerator. Each of these business support partners play a crucial role in our economic development and recovery efforts. Whitby Chamber of Commerce – The Chamber has a long history in Whitby and acts on behalf of its members as a dominant voice within the business community, advocating for legislative and policy change. It drives local economic growth and professional development, serving a variety of economic sectors. Most of the membership base are small companies of less than 50 employees. Downtown Whitby Business Improvement Area (BIA) – Downtown Whitby’s BIA is in a specially designated zone in the downtown core that was established in 2017. Its 300 member businesses contribute to a program that helps build awareness of product and service offerings and activities to experience in the downtown. 1855 Whitby Tech Accelerator - 1855 Whitby is a vital partner for Whitby’s innovation economy. This organization was co-created by the Town of Whitby and Jason Atkins, CEO of 360insights.com in 2019. 1855 Whitby provides support for established high-potential tech and innovation companies to accelerate growth and land within the community. This organization has collaborated with the Town of Whitby’s economic development team on a variety of projects including investment missions, events, programming and other initiatives that support the growth of the Downtown Whitby Innovation District. Aside from the Whitby Chamber of Commerce, Downtown Whitby BIA and 1855 Whitby, there are several business support organizations in Durham Region that service business expansion and growth. Each of these organizations has a role to play as Ontario’s economy reopens after the COVID-19 outbreak is contained. Some additional organizations that contribute to Durham’s business support ecosystem are in: Non-profit sector – Composed of organizations funded by members and programs or government programs (i.e. Business Advisory Centre Durham, Spark Regional Innovation Centre, Spark Angel Network, John Howard Society of Durham Region, Durham Region Unemployed Help Centre, Central Counties Tourism, and Palette Skills). Academic sector – Composed of Durham College and Ontario Tech University’s research and entrepreneurship programs. Trent University – Durham Campus has also expanded its programs over the past few years. Whitby companies can access these academic resources to solve engineering or science challenges and/or to hire students to complete business projects. Federal, provincial and regional governments – Composed of federal crown corporations such as the Business Development Bank of Canada and Export Development Bank of Canada, agencies such as FedDev Ontario and National Research Council of Canada. A considerable amount of funding programs have been created in response to the economic fallout from COVID-19. Many of the business support programs are delivered through these crown corporations and agencies. FedDev Ontario is one of the six Canadian regional development agencies that implements the Regional Relief and Recovery Fund, a $962 million support fund for businesses across Canada TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 6
impacted by COVID-19.2 Ontario Centres of Excellence is a provincially funded agency with a mandate to advance Ontario’s innovation agenda. In the past, one of the key goals of the Region’s Economic Development and Tourism department is to attract new foreign direct investment to Durham. Given the investment attraction challenges presented by COVID-19, their focus may need to shift to support businesses across the Region. Further details about the business and entrepreneurship support services offered by each organization are provided in Appendix 2. Any economic recovery plan that is implemented requires contribution from a combination of a number of these business support organizations. 2Regional Relief and Recovery Fund: COVID-19, Government of Canada, https://www.ic.gc.ca/eic/site/icgc.nsf/eng/h_07682.html last updated on May 29, 2020. TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 7
Mobilization: COVID-19 Response Economic development team members and others in the business support ecosystem mobilized early in the pandemic to respond to economic fallout. Durham Economic Task Force – COVID-19 Response Team The Durham Economic Task Force is made up of Durham Region’s Economic Development and Tourism team; Business Advisory Centre of Durham; all of Durham’s Chambers of Commerce and Boards of Trade; as well as local municipal economic development teams and local Business Improvement Associations (BIAs). The Durham Economic Task Force’s priorities are to: Advocate for the urgent needs of our business community to the Provincial and Federal Governments. Provide resources and information from all levels of government to businesses. Guide small businesses through the process of accessing emergency financial assistance. Develop and implement support programming for impacted businesses. Promote Durham small businesses, particularly local stores, food and agri-businesses who are offering safe, no-contact delivery and pick-up options. A Durham Business Recovery Series was created and began in early May 2020. To date, the following sessions have addressed: mental health; navigating government funding programs; navigating new business practices; human resource processes; and e-commerce practices. In addition, this task force led two business surveys early in the COVID-19 outbreak to understand the severity of this health crisis to the business community. Key insights from the results showed an overwhelming impact to the business community. Small businesses were most impacted early into the pandemic. Over fifty percent of the businesses would either shutdown or partially shutdown from the health crisis measures to control the outbreak. In addition, over fifty percent of the business community respondents did a layoff of staff. In May, there was a subsequent business survey conducted by this task force. Key insights from this survey were: Nearly 50% of survey respondents report major or catastrophic impacts to their businesses. Biggest barriers to recovery were potential for a second wave, cash flow financial implications and operating with physical distancing restrictions. Key stimulus strategies included expanding high-speed Internet access and supporting local initiatives. TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 8
Nearly three quarters of respondents are changing their workplace safety measures. 43% of respondents were estimating up to six months of business recovery and another one-third were estimating up to 12 months recovery. In May 2020, sector roundtables were arranged with key companies in Durham Region. These roundtables offered the business community a chance to provide feedback on what efforts and programs were required for business recovery and share ideas among one another. Durham Region approved a Regional Recovery Framework and Action Plan in June 2020, which was driven by a Regional Recovery Task Force. This Regional Task Force included members of the Durham Economic Task Force and addressed four pillars of recovery: social, built, economic and municipal. A set of 50 action items were identified and focused on the potential for job creation, community health and safety, restoration of services, support for businesses, and for vulnerable residents and long-term sustainability. More specifically, the economic pillar addressed the following actions: support small business growth enable infrastructure development attract investment in the energy, environment and engineering industry and innovation community enable Smart Community projects As the summer months progressed, the number of COVID-19 cases declined and eventually stabilized in Ontario. However, as of early October 2020, the number of cases are dramatically increasing as we enter the second wave. There remains little immunity to the virus and no vaccine. Further advocacy is required by this group to define what conditions could trigger another lockdown. Whitby’s Business Recovery Survey Whitby’s economic development team along with members of Council garnered input to a business survey over the months of June to early September 2020. Sixty-five (65) responses were gathered during this time. Key insights from this survey were: Survey respondents were well represented in food services (20, or 31% of respondents) and professional, scientific and technical services (17, or 26% of respondents). Surveys were also completed by respondents in personal services, retail trade and health care. The number of business owners who completed the survey were largely represented in the 0-20 employee category (57, or 88%). Fifty respondents (50, or 77%) indicated a moderate (14) or major (36) negative impact to their business due to the COVID-19 pandemic. Of all the barriers listed, the top three barriers to economic recovery are the potential for a second wave (50, or 77%), cash flow implications (44, or 66%) and increased costs associated with compliance (39, or 60%). The most common responses for a full business recovery from summer 2020 to pre-COVID-19 conditions were 6 – 12 months (20, or 31%) and more than 12 months (21, or 32%). The following themes emerged from the comments. TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 9
For businesses significantly impacted by COVID-19: o many are taking services online and finding new ways to create income o many will be challenged to cover rent and taxes over the short term o many of them are recommending that government bodies should be issuing compliance warnings and/or educating them about regulatory requirements Some businesses have not been impacted by COVID-19 and their revenues have either stayed strong or increased from the previous year There is a lot of negative attention placed on COVID-19. People need to understand and focus on the population’s resiliency to this virus Health and safety restrictions and guidelines, while they may be necessary, are making businesses unprofitable. These restrictions are especially true for restaurants, entertainment, and personal and aesthetic service businesses. Further details from the survey are in Appendix 3: Business Recovery Survey Results. Labour Force Impact The COVID-19 pandemic immediately disrupted Canada’s labour force. Travel restrictions, business closures and physical distancing measures imposed by the Canadian government soon after created a sudden shock to the economy. Across Canada, the unemployment rate shot up to 12.3% by June 2020. Comparatively, Canada’s unemployment rate was 5.6% in June 2019. With nearly 2.5 million people unemployed across Canada, emergency relief measures have been implemented federally and funding was dispersed to those who became unemployed.3 The following table illustrates the labour force impact of the COVID-19 virus. By using June 2019 as a baseline, there were 12,000 fewer people in the labour force and 26,400 fewer people employed in the Oshawa Census Metropolitan Area (CMA) in 2020.4 Despite the job losses, the Oshawa CMA has shown resiliency as over 200,000 jobs remained and an unemployment rate stayed under twelve percent (12%) despite the virus and its labour force impact. The majority of the loss in employment was from full-time jobs (-14,800 or 7.9%), but also a sizable number of part-time jobs (-11,600 or 30%) were lost too. The short term job losses in part-time employment indicates that people employed in vulnerable, casual roles were at greater risk of losing their jobs early into the pandemic. 3 Statistics Canada. Table 14-10-0017-01- Labour force characteristics by sex and detailed age group, monthly, unadjusted for seasonality. 4 The Oshawa CMA includes the Town of Whitby, City of Oshawa and Municipality of Clarington. TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 10
Table 1: Labour Force Characteristics: Oshawa Census Metropolitan Area June 2019 March 2020 June 2020 Total Change % Change June 2019- June 2019-2020 2020 Population 344,900 350,000 351,200 6,300 1.8% Labour Force 238,700 233,400 222,600 -12,000 -5.0% Employment 227,000 217,000 200,600 -26,400 -11.6% Full-time 188,300 174,600 173,500 -14,800 -7.9% Part-time 38,700 40,000 27,100 -11,600 -30.0% Unemployment 11,700 18,900 26,200 14,500 123.9% Not in Labour Force 106,200 116,600 124,500 18,300 17.2% Unemployment Rate 4.9% 8.1% 11.6% 6.7% Source: Statistics Canada. Table 14-10-0095-01 Labour force characteristics by census metropolitan area, three-month moving average, unadjusted for seasonality. Real Estate Market Impact Industrial – The demand for industrial space in the east end of the Greater Toronto Area (i.e. Durham Region) was very high prior to the COVID-19 pandemic outbreak. The overall availability rate in Durham Region was at an all-time low at 1.2% and average asking net lease rates were a strong $7.29 per sq. ft.5 Industrial space in Whitby was declining as Amazon leased 354,000 sq. ft., the largest new deal at the end of 2019 and marking the company’s entrance into Durham Region. There was also a large 385,000 sq. ft. industrial project along Tricont Avenue that was preleasing. The industrial market has shown resiliency during the pandemic. CoStar Realty Research is forecasting a vacancy rate to adjust to 1.9% by the first quarter of 2022.6 This adjustment is likely due to many smaller companies lacking cash reserves to get Carterra’s industrial development project them through this economic downturn. A continued along Tricont Avenue, February 2020. low vacancy rate indicates that there will be a demand again for industrial space, past 2021. 5 Avison Young, Fourth Quarter 2019 / Industrial Market Report, p.2. 6 CoStar Realty Research, custom industrial market search, July 2020. TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 11
Office – The office market inventory in Whitby has remained relatively stable over the past few years. It is estimated that there is 1.5 million sq. ft. of office space inventory in Whitby with a healthy vacancy rate of 2.7%. In comparison, the Greater Toronto Area (which includes Whitby) has 272 million sq. ft. of office space inventory with a vacancy rate of 4.5%. 7 Whitby is a small office market and represents less than one percent of the entire office market of the Greater Toronto Area. CoStar Realty Information is forecasting vacancy rates to trend over 4.0% and market rental rates to return to pre-COVID-19 rates by the first quarter of 2022.8 It is reasonable for companies that require office space to re-evaluate their office needs when their leases come due. Many of their employees are working from home or have fewer employees. These companies may require less office space in the future. This presents an economic development opportunity for Whitby as companies with offices in large urban centres like Toronto may turn to smaller Brookvalley’s commercial and retail development offices closer to labour in suburban areas like project along Baldwin Street, July 2020. Whitby. Residential - On a year-over-year basis, residential transactions in Durham Region decreased considerably during May in comparison to the same time last year. The number of sales reported represented a decrease of forty five percent (45%) in Whitby for all home types. It is positive to note the average selling price in Whitby has increased to $736,640 for all home types.9 The full impact of the housing market remains unknown at this time. For Whitby, the housing market has shown considerable resiliency when comparing sales and average selling prices in May 2019 to May 2020 (Table 2). The volume of house sales may have declined in each major category year-over-year, but average house prices have increased in each of categories (i.e. detached, semi-detached and attached/ row /townhouse). 7 CoStar Realty Information Inc., custom office market search in May 2020. 8 CoStar Realty Information Inc., custom office market search in July, 2020. 9 Durham Region Association of REALTORS®, Housing Report, May, 2020. TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 12
Table 2: Monthly Housing Sales for three common home types, Town of Whitby, May 2019 and 2020 Comparison May 2019 May 2020 Housing No. of Average No. of Average % Change % Change Type Sales Price Sales Price in Sales in Price All Home 242 $681,446 132 $736,640 -45% 8% Types Detached 171 $747,300 97 $802,190 -43% 7% Semi- 9 $539.510 4 $606,875 -56% 12% Detached Attached/ 35 $553,222 15 $600,293 -57% 9% Row/ Townhouse Source: Durham Region Association of Realtors, Housing Report, May 2019 and May 2020. The collaborative and coordinated response among Durham Region municipalities, boards of trade, chambers of commerce and others to mobilize and create the Durham Economic Task Force has proven to be effective during this crisis. The members have been able to advocate for businesses as a collective to the provincial and federal governments and offer business support programming by tapping into their resources network. This agility to navigate and influence other levels of government at a critical point in time during the COVID-19 health crisis demonstrates that there is continued value with this group for economic recovery programming. The labour force in the Oshawa CMA has shown resiliency with over 200,000 jobs remaining despite the COVID-19 health crisis. The negative impact to the labour force left over 26,200 people in the Oshawa CMA unemployed. The Federal government responded quickly in March 2020 with an income support program - the Canada Emergency Response Benefit. This program would alleviate the stress for eligible workers who stopped working due to COVID-19. This program was modified and extended into September 2020. These modifications are most likely a result of advocacy efforts from local groups such as Durham Economic Task Force and others across Ontario and Canada. For Whitby and the surrounding area to recover from the job losses requires a plan that addresses improving the employability of people affected by the economic fallout. Although it is too soon to gauge the full economic impact, businesses have always had to adapt to changing market demands and pressures to remain viable. There is a need to understand the number of businesses remaining and new ones created for 2020 and 2021 and how this business data compares to prior years. An immediate to medium term response from economic development and business organizations requires a tactical economic recovery plan that addresses the local economic fallout. TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 13
Economic Recovery Plan As the COVID-19 pandemic developed, it became clear that an Economic Recovery Plan needed to be implemented over a short time period (i.e. within 18 months). The Economic Recovery Plan is a ‘living document’ and can be modified readily with new challenges and solutions that may arise. Five key priorities emerge and require a tactical response in discussions with business owners, other business support organizations, and the Durham Economic Task Force. These five priorities are intended to anchor and qualify all subsequent actions. The associated objectives support the overarching economic development focus prior to COVID-19, which is to address the creation of more local jobs, revitalize downtowns and continue to be the “Community of Choice” by enabling a diverse, sustainable economy. These key priorities of a COVID-19 economic recovery are: 1. Retain existing businesses by providing resources and support programs – Many business owners and representatives of business support organizations state that businesses won’t be “turning back to normal”. There will be a “new normal” where businesses have changed their product and service offerings and the way they deliver these products and services. Objective: Provide existing businesses with the tools and resources to succeed during and after COVID-19. 2. Revitalize and rediscover Whitby’s downtowns and manage the main street impact – Downtown businesses were significantly impacted by COVID-19 public health provisions and Provincial closures. Many of the businesses closed temporarily or offered product/service delivery with reduced staff. Most recently, business expenses remain high and for many of them revenues are down. Downtown businesses could be at risk of closing under these public health requirements. Objective: Restore attractive downtowns to rediscover the shops, services, heritage, and culture in a pedestrian-friendly environment. 3. Foster and sustain the innovation economy – Many of the companies in the innovation economy and technology sector are start up or scale up companies. Their business value is in their intellectual property and founders. Typically, these businesses are new and may not qualify for the federal and provincial COVID-19 response programs. For example, the National Research Council of Canada’s Industrial Research Assistance Program or Business Development Bank of Canada’s programs require business financial statements to ensure business viability prior to providing funding or offering financing to companies. However, it is important to recognize that these companies create new employment opportunities, can adapt to changing market demands and create new business ventures during moments of economic crisis. Objective: Collaborate with 1855 Whitby Tech Accelerator and innovative businesses (e.g. 360insights.com, geekspeak Commerce) to restore growth and investment in our Innovation District and local economy. TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 14
4. Engage with the post-secondary institutions and other service providers to improve workforce employability – The post-secondary institutions (i.e. Ontario Tech University, Durham College and Trent University – Durham) are key anchors in Durham Region that will help drive the economic recovery process. These institutions and other service providers can offer educational programming that can re-skill or upskill people in the labour force who are faced with economic hardships. Objective: Promote educational programming that meets demands of local employers. 5. Improve customer service processes and business experiences – This COVID-19 crisis has presented an opportunity for Whitby to improve its processes further to respond quickly to customers. For example, business resources were quickly curated and available on the main Whitby website, and the Town quickly shifted key services online. Business success story telling during the health care crisis has been developed in the immediate term as well and shared through Whitby’s economic development social media channels. Objective: Reassess previous customer experiences, align corporate objectives and modify larger corporate processes where appropriate. The successful implementation of the Economic Recovery Plan will need the support and cooperation of the corporation and the business support organizations identified earlier in the report to ensure a stronger and more resilient business community when COVID-19 passes. The timing for the associated actions that serve to implement the strategy are categorized as immediate (IT) (immediate to 6 months); short term (ST) (6-12 months); and medium term (MT) (12-18 months). Some of the actions are also complete or in-progress. The identification of leads and internal/external partners is included to provide direction for who is responsible for each action and which other organizations need to be involved in carrying the action forward. This recovery plan can be implemented with existing staff and financial resources for 2020 and 2021. TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 15
Priority 1: Retain existing businesses by providing resources and support programs Objective: Provide existing businesses with the tools and resources to succeed during and after COVID-19 . Number Action Lead/Partner Timing IT ST MT (
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Priority 2: Revitalize Whitby’s downtowns by managing main street impact Objective: Restore attractive downtowns to rediscover the shops, services, heritage, and culture in a pedestrian-friendly environment. Number Action Item Lead/Partner Timing IT ST MT (
Number Action Item Lead/Partner Timing IT ST MT (
Number Action Item Lead/Partner Timing IT ST MT (
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Priority 3: Foster and sustain growth in the innovation economy Objective: Collaborate with 1855 Whitby Tech Accelerator and innovative businesses (e.g. 360insights.com, geekspeak commerce) to restore growth and investment in our Innovation District and local economy. Number Action Item Lead/Partner Timing IT ST MT (
Number Action Item Lead/Partner Timing IT ST MT (
Number Action Item Lead/Partner Timing IT ST MT (
Priority 4: Engage with the post-secondary institutions and other service providers to improve workforce employability Objective: Promote education programming that meets demands of local employers. Number Action Item Lead/Partner Timing IT ST MT (
Number Action Item Lead/Partner Timing IT ST MT (
Priority 5: Improve Whitby’s customer service processes and business experiences Objective: Reassess previous customer service processes as it relates to our corporate objectives and modify larger corporate processes where appropriate. Number Action Item Lead/Partner Timing IT ST MT (
Number Action Item Lead/Partner Timing IT ST MT (
Conclusion This Economic Recovery Plan for 2020 and 2021 will only be successful with implementation of the actions and accountability of its performance. To ensure accountability, it is vital to identify and make best use of the resources available among Whitby’s Economic Development team and business support organizations. Collaboration has been a key component of the COVID-19 response since March 2020. The Durham Economic Task Force has been a key example of Durham’s local chambers of commerce and local municipalities working together to respond to immediate business challenges. Federal and provincial governments responded immediately with income support and business support programs. Any business recovery programming needs to be aligned with the Province’s Economic Recovery Framework. This three stage process places the health and safety of residents as the top priority. Although Durham Region public health unit is in Stage 3, there needs to be further reduction in cases. Economic recovery is underway in Whitby. Further recovery needs to be intentional, collaborative and equitable among business support organizations over the next 18 months. A full economic recovery will require access to child care and a full re-opening of schools. Council’s role is to continue to engage with the business community, ensure resources (staff and financial) are available at the Town of Whitby to respond to economic recovery, and ensure Town policies (e.g. parking, Pedestrian drop-off zones, etc.) enable businesses to carry on through 2020 and 2021. In addition, this plan is meant to be fluid and may need to evolve as the COVID-19 pandemic evolves. New actions and initiatives may need to be added to account for these evolving conditions in response to the health and safety of residents. Despite these present and short term health care and economic conditions, there is a need for a longer term economic development strategy to accelerate business growth post- COVID-19 that builds upon these recovery efforts. The formulation of this strategy requires input from business community members and needs to examine a sustainable and prosperous economic future for the subsequent five years. TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 31
Appendix 1: Background Analysis Demographic Analysis Population - The Town of Whitby has experienced strong population growth over the past decade. Whitby’s population increased from 122,022 residents in 2011 to an estimated 137,733 residents in 2019. This increase of 15,711 residents (13% growth) in less than a decade has led to significant residential development during the time period. With this growth, there are associated challenges in ensuring effective service delivery and sustainable use of land area. The Town of Whitby’s Official Plan identifies the need for greater concentration of land uses in Whitby and higher densities of jobs and people to accommodate a forecasted population of 192,800 residents by 2031. 10 The figure below provides the population projections for Whitby through to 2031. Figure 1.1.: Population Projections, 2021 to 2031 Year Population 2021 156.915 2026 179,150 2031 192,800 Source: Town of Whitby Official Plan, 2018 Office Consolidation, p.5. It is important to note the impact population growth can have on the Town of Whitby. The development charges and community benefit charge (CBC) study is underway and planned to be completed in 2021. The Town-wide development forecast for the 2021 Study projects a population increase from 2021 to 2031 of over 33,000 people.11 Historically, development charges have not fully paid for new growth and the tax base has covered much of the difference. The recent changes to the Development Charge Act will put increased pressure on the Town to fund new residential growth while managing effective service delivery. 10 Town of Whitby Official Plan, 2018 Office Consolidation, p. 5. 11 Town of Whitby Staff Report, Development Charges Background Study Update (Revised), (CS 33-20), July 20, 2020 TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 32
Population by Age Cohort - As the next figure indicates, Whitby will not only have to address the challenges of a growing population, Whitby will also have to face the challenges of retaining its young population. While Whitby remains a young community and has 20% of its population under the age of 15 and 14% of its population 15 to 24 years of age (Ontario is lower at 16% and 12% respectively), there needs to be an effort to keep this population engaged locally and motivated to stay in the community or region and fill employment opportunities over the coming years. Figure 1.2: Population by Age, 2019 20% 18% Percentage of Total Population 16% 14% 12% 10% 8% 6% 4% 2% 0% Less than 15-24 25-34 35-44 45-54 55-64 65+ 15 Whitby Ontario Source: Manifold Data Mining Inc., February 2020. TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 33
Population with Income over 15 years of age - The following figure indicates that in the Town of Whitby much of the population are in households earning over $100,000 in annual income. The proportion of income brackets over $100,000 are higher in Whitby than the Province of Ontario. Figure 1.3: Population with income over 15 years of age 20% Percentage of population with income over 15 years of age 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Under $25,000 to $50,000 to $80,000 to $100,000 $125,000 $150,000 $200,000 $25,000 $49,999 $79,999 $99,999 to to to and over $124,999 $149,999 $199,999 Whitby Ontario Source: Manifold Data Mining Inc., February 2020. The higher proportions of households earning over $100,000 of income in Whitby compared to the Province indicates higher disposable income and is driven by proximity to the Greater Toronto Area. Residents will have more income to support service-based industries such as restaurants, entertainment and recreation facilities, and health and wellness companies. TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 34
Knowledge of other languages - The familiarity with other languages except English or French in a community indicates ethnic diversity. The value of diversity cannot be underestimated. Academic research by notable scholars such as Richard Florida and others confirm that a diverse community generates social and economic prosperity. A diverse community indicates an openness to newcomers, new businesses and new ideas. A diverse community is also highly correlated with its ability to attract talent and innovative businesses, which drive business productivity. Having citizens from a wide range of ethnic backgrounds also generates access to new economic opportunities, which can include new business networks or export markets. There are large populations in Whitby that are familiar with other languages which indicates local diversity. The following table indicates that the Whitby population is most commonly familiar with Italian, Spanish and Urdu (commonly spoken in Pakistan) languages. Across the Province, Mandarin and Cantonese are most commonly spoken followed by Spanish. In terms of the population familiar with Indigenous languages, there is a small population of over 100 residents. These languages are at risk of disappearing if the Indigenous culture is not passed on to the next generation. Figure 1.4: Top 10 Languages other than English or French Top 10 - Knowledge of other languages Ontario Whitby Number of people 1 Mandarin 1 Italian 2,427 2 Cantonese 2 Spanish 2,382 3 Spanish 3 Urdu 2,352 4 Italian 4 Mandarin 1,561 5 Punjabi 5 Hindi 1,507 6 Hindi 6 Farsi 1,300 7 Arabic 7 Filipino 1,272 8 Urdu 8 Tamil 1,181 9 Filipino 9 Greek 1,114 10 Portuguese 10 German 1,040 Indigenous 112 languages Source: Manifold Data Mining Inc., February 2020. TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 35
Labour Force Analysis A component of Whitby’s overall economic position is its labour force profile, which encompasses a review of the composition by industry and occupation. The following table indicates Whitby’s labour force concentration in comparison to the Province of Ontario. The largest concentration of our residents are in: Professional, scientific and technical, administrative, waste management services (9,478 residents) Retail trade (8,864 residents) and Health care and social assistance industries (7,697 residents). However, when the proportion of the labour force in industry is compared to the Province of Ontario, Whitby’s labour force is proportionately higher in: Utilities and construction (7,481 residents, or 9% of the labour force) Finance, insurance, real estate and leasing (7,581 residents or 9% of the labour force) and Educational services industries (6,957 residents or 9% of the labour force). The higher proportions of people employed in these industries is likely driven by the proximity to Ontario Power Generation (Pickering in Clarington), the Downtown Toronto Financial Services Hub and Ontario Tech University, Durham College and Trent University Durham campuses (Oshawa and Whitby). TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 36
Figure 1.5: Labour Force by Industry, 2019 Whitby Ontario Labour Force by Industry Total % of % of Whitby's Total Total Labour Force Proportion Agriculture, forestry, fishing, hunting, mining, etc. 655 1% 2% Lower Utilities and construction 7,481 9% 7% Higher Manufacturing 5,781 7% 9% Lower Wholesale trade, transportation and warehousing 6,373 8% 9% Lower Retail trade 8,864 11% 11% Even Information and cultural industries 2,610 3% 3% Even Finance, insurance, real estate, and leasing 7,581 9% 8% Higher Professional, scientific and technical, administrative, 9,478 12% 13% Lower waste management services Educational services 6,957 9% 7% Higher Health care and social assistance 7,697 10% 10% Even Arts, entertainment, recreation, accommodation and 6,205 8% 9% Lower food services Other services (except public administration) 2,905 4% 4% Even Public administration 4,994 6% 6% Even Industry - not applicable 2,228 3% 3% Even Source: Manifold Data Mining Inc., February 2020. TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 37
The following table examines the composition of the labour force by occupation in Whitby and Ontario. The largest concentration of the labour force are in sales and service occupations (17,461 residents), but this proportion (22%) is slightly lower than the provincial average (23%). There are three occupational groups in Whitby that have larger concentrations than the Province of Ontario. These groups are: Management (10,445 people in the labour force, or 13 % of the labour force) Business, finance and administration (13.319 people or 17%) Education, law and social, community and government services (10,784 people or 14%). There is a great deal of diversification among all of the occupations in Whitby as all the occupations are within two percentage points compared to Ontario. There is a higher tendency of Whitby residents to be employed in professional occupations such as management, business, finance, education and legal services. Figure 1.6: Labour Force by Occupation, 2019 Whitby Ontario Labour Force by Occupation Total % of % of Whitby's Total Total Labour Force Proportion 0 Management 10,445 13% 11% Higher 1 Business, finance and administration 13,319 17% 16% Higher 2 Natural and applied sciences and related 5,654 7% 7% Even 3 Health 4,515 6% 6% Even 4 Education, law and social, community and government 10,784 14% 12% Higher services 5 Art, culture, recreation and sport 2,601 3% 3% Even 6 Sales and service 17,461 22% 23% Lower 7 Trades, transport and equipment operators 9,329 12% 13% Lower 8 Natural resources, agriculture and related production 1,069 1% 2% Lower 9 Manufacturing and utilities 2,727 3% 5% Lower Source: Manifold Data Mining Inc., February 2020. TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 38
The following figure identifies that employment grew in Whitby from 33,610 jobs in 2011 to 36,595 jobs by 2016, for an average employment growth of 1.8%. In comparison, the population grew from 122,022 residents in 2011 to 128,377 resident by 2016, for an average growth of 1.0%. This metric indicates that Whitby has been able to generate employment growth at a higher rate than population growth. Figure 1.7: Employment Growth, 2011-2016 140,000 128,377 122,022 120,000 100,000 No. of People 80,000 60,000 33,610 36,595 40,000 20,000 0 2011 2016 Employment Population Source: Statistics Canada, 2011 National Household Survey and 2016 Census. Catalogue Number 98- 400-X2016325 TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 39
The following figure examine the highest educational achievement for the labour force in Whitby in comparison to the Province of Ontario. Although the trends for Whitby are very similar to the Province, there is a larger portion of the labour force with a college or related diploma (30% versus 25% for the Province) and a Bachelor’s degree (23% versus 21% for the Province). These results indicate that the local labour force is highly educated with specialized skill sets. This labour force offering adds to the local value proposition for businesses being located in Whitby. Figure 1.8: Highest Educational Attainment, 2019 University Degree in No certificate, Degree in Province of Ontario Town of Whitby certificate or medicine, diploma or medicine, diploma dentistry, degree dentistry, above veterinary 6% veterinary bachelor medicine or University medicine or level optometry Master's certificate or optometry Master's 2% 1% degree or diploma 1% degree or No certificate, above doctorate doctorate diploma or 6% bachelor 8% degree level 10% 2% High school Bachelor's certificate or degree Bachelor's High school equivalent 23% degree certificate or 25% 21% equivalent 24% College, College, CEGEP or other CEGEP or other University non-university University non-university certificate or certificate or Apprenticeship certificate or certificate or diploma below diploma or trades diploma below diploma bachelor level 30% certificate or bachelor level 25% 2% Apprenticeship diploma 2% or trades 6% certificate or diploma 6% Source: Manifold Data Mining Inc., February 2020. TOWN OF WHITBY Economic Recovery Plan 2020-2021 Page | 40
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